Just yesterday, I talked about Bitcoin 2021 May correction’s correlation with the March 2020 crash. But at that time, the data we had suggested very little similarity between the two. But the latest data from Glassnode suggests that Bitcoin exchanges are seeing the fastest inflow of Bitcoin since that time. As the market’s panic sells after Elon’s tweet, the prices of Bitcoin continue to drop even after trying to recover but failing to hold above 45k. On Monday, there was a net inflow of 30,749.89 bitcoins into exchanges, the largest since March 12, 2020, when markets crash substantially amidst the pandemic.
The Bitcoin crash!
Bitcoin was trading at about $59,000 when Elon announced that Tesla would no longer be accepting Bitcoin. The reason cited for the same was the environmental effect of the currency. In just 5 minutes of the announcement, the price of Bitcoin fell by 5% and then continued to drop before closing slightly above the $50k price point. The following day there was even more bitter news, and the markets continued to submerge under the increasing bearish market sentiment.
At the time, analysis suggests that if the price of Bitcoin falls below $46k, then it could trace back to $42k or even lower. And the same has happened, as currently, BTC is trading just under $41k, registering 3 months low in the price movement of Bitcoin.
Why should you not sell your Bitcoins?
If you look at the price history of Bitcoin, anyone who has hodled their coins for over four years has never been at a loss. In fact, only long-term holders could actually benefit from Bitcoin. Talking in terms of the falling price and inflow in exchanges, note that most of it is happening in Binance. Reports suggest that while Binance is getting more sell orders, Coinbase still sees outflows as institutions are looking to buy the dip. So, essentially you are selling your one chance at getting rich to already wealthy but smart people. If you want to sell, do it on the way up, not on the way down. Because ultimately, if you do it on the way down, there was no point in anything.
Do note that this is not financial advice and it’s your decision what you would like to do with your money. But do remember Elon is temporary, the bad news is temporary, the ban is temporary, but Bitcoin is permanent. It has already seen more than 3 US presidents and a lot of bans and unbanning taking place. And it is still here.
What are your thoughts on the huge inflows of BTC into exchanges? And do you think that very soon we could see an upward price movement? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.